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Want a student loan? Where’s your budget?

Created: On June 28, 2011 @ 12:09 am In

Student loan defaults have become such a concern that one community college is now requiring students to complete personal budget worksheets in order to receive loans. Tidewater Community College, based in Norfolk, Va., wants students to outline a realistic picture of their financial situation before and after graduation, including a repayment plan for student loans, according to [1] Inside Higher Ed.

Making students accountable

The move goes beyond requirements set forth by the U.S. Department of Education for receiving federal loans. The school hopes making students more accountable will help them make more responsible decisions about borrowing money for education expenses. Deborah DiCroce, president of Tidewater Community College, told Inside Higher Ed that student loans are “not a handout.” She went on to say:

It’s not something that goes away when the college experience is completed or not completed. There’s a commitment to repay a loan that has as much weight to it as any other kind of borrowing one might do. My concern, as we are ramping up our financial aid program, is keeping a close eye on our default rates, as one of our measures of accountability. It just became clear that we needed to take a step beyond what the feds require. Where is our responsibility to educate a borrower on this type of investment?

Looking for debt solutions

Many students need [2] debt help because of high student loan balances they can’t pay back. Not only are many recent graduates having a tough time finding jobs that allow them to afford student loan payments, but they are also carrying high levels of [3] credit card debt.

Tidewater Community College has the right idea with having students put together a financial plan that involves paying back any money borrowed. More students need to be educated about the consequences of taking on student loan debt and combining it with high-interest credit card debt, auto loans, etc.

Article printed from DebtHelp.com Blog: http://www.debthelp.com/blog

URL to article: http://www.debthelp.com/blog/2011/06/28/want-a-student-loan-where-is-your-budget/

URLs in this post:
[1] Inside Higher Ed: http://www.insidehighered.com/news/2011/04/14/tidewater_community_college_requiring_students_with_fe
deral_loans_to_complete_personal_budget_and_repayment_plan

[2] debt help: http://www.debthelp.com//
[3] credit card debt: http://www.debthelp.com/blog/2011/06/11/5-warning-signs-that-you-need-help-with-debt/